The End Of America : American Economic Implosion : Stansberry Research

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Re: The End Of America : American Economic Implosion : Stansberry Research

regards this "enmity" between US and China which is the cause of the impending US dollar collapse, well let me direct you guys to the recent visit by Mr Hu.

Pay particular emphasis to the last section of this blog which bizarrely i bumped into after i made my point in my previous post. It's worth considering in the grand scheme of things and further illustrates the point i'm trying to make:

The dumping of US dollars by the chinese in recent months is nothing but muscle flexing to let everyone know what they CAN do. similarly, the boycott of the recent Nobel Peace prize by China and it's economic allies (who i might add boycotted at the behest of china).

so that leads to the recent state visit by Mr Hu which was nothing but a love-in so everyone knows where they stand; mutually beneficial bilateral, symbiotic relationship.

brother pluto i suggest you bring people a little more credible next time.

You can start with reading about and seeing videos of Peter Schiff, who is not some internet armchair expert but a highly respected figure in the financial world. He is a regular business commentator on CNBC, MSNBC and pretty much every major business news program and there are videos of him on news channels going as far back as 2007 when everyone was laughing at him for his predictions about the housing bubble, subprime mortgages and the credit crunch. Secondly, Peter Schiff is not some genius in business academia, but it seems he is one of the few who have any common sense left.

What Schiff is saying about savings, debt, the necessity of money having intrinsic value, the dangers of paper money not backed by gold or precious commodities, the need for creating value through products and services - all that isn't a product of his peerless insight, it is fundamental economics (and principles of economic finance). You can see it in Schiff's book "Crash Proof" and Henry Hazzlitt's "Economics in One Lesson" (written in the 1970s), both of which are good resources for the layman who isn't well acquainted with economic sciences. I'm a business graduate who has actual investments in mutual funds and regularly observes the markets, not some schmuck who reads doomsday prophecies on the internet and falls for statements that can't be backed up by sound theory and practical examples.

you're merely parroting what guys like alex jones say. again, if you read my post, i'm NOT disagreeing with a collapse, i'm just not convinced that such a collapse is imminent like you guys along with our friend stansberry are shouting about.

A collapse is imminent because the Federal Reserve and the U.S government are interfering with free market forces that determined the success of American capitalism. During a recession, the government curbs spending, spikes interest rates, encourages people to save and discourages them from investing in equity, but what is happening right now in the U.S is the exact opposite of that. There are no savings and thanks to historically low interest rates, people continue to borrow to the hilt. Banks loan money deposited by the public, so if the public has no savings, where are the banks getting the money they are loaning out? The government? Nope. They are already knee-deep in trillion dollar deficit, are involved in two very expensive wars and the Bush-era tax cuts will stay in place. So once again: where is the money coming from?

The answer is: they are simply printing it out of thin air. Before the 70s, the dollar's value was determined by U.S gold reserves but not since it Nixon negated the Bretton Woods agreement:

Oh and you might want to brush up on your economic history as to why Richard Nixon ended the Bretton Woods agreement.

don't you think that the chinese know that the dollar is worth 5 cents on the dollar? yet they still trade in it albeit not at the levels they once were? why do they still keep their currency at artificially low levels? have you been following the chinese economy recently?

Yes, I have. Like I said, the world's biggest manufacturer is dependent on the world's biggest consumer. China hasn't dumped the U.S dollar because the dollar is the world's reserve currency and this allows them to trade their dollars with other countries for goods and services. Secondly, China keeps their currency at artificially low levels to encourage the Americans to manufacture in and buy from China. If the yuan were to appreciate in accordance with the fall in value of the U.S dollar, then American MNCs will no more incentive to invest in China and will simply take their money where they can get 'more bang for the buck' so to speak. Business love China because of the exchange rate, its stable political environment and foreign-business friendly laws (such as no labor unions or limit on working hours).

your understanding on this topic is very simplistic brother. that's not me having a dig at you but the bigger picture is far more complex than you're making out lol. you've ignored all i said on the impact culture and military might have on an economy and just rushed headlong into economics for beginners....beginning with stansberry!

I think you will found out in the course of our discussions that I know a little bit more than introductory economics. I have given you something that is infinitely more simplistic than even the Cliffnotes version of the current state of the global economy. I have refrained from using technical academic jargon because I don't want to alienate those people reading this thread who are not familiar with higher level economics.

Oh and it is nice to see that you conveniently ignored my point about Japan (I will even add in Germany and Italy) as a country whose economic standing is independent of its cultural, monetary and military influence in the world.

Re: The End Of America : American Economic Implosion : Stansberry Research

Originally Posted by marco100

The dumping of US dollars by the chinese in recent months is nothing but muscle flexing to let everyone know what they CAN do.

Yes, it is muscle flexing, because the Chinese can't let go of the U.S dollar en masse without chopping off their own arms. The U.S is counting on the dollar's reserve currency status to keep them afloat, but if the excess money supply continues towards another hyperinflation and $150 oil barrels, everyone is going to realize that the dollar is a troubled child not worth bearing anymore.

Re: The End Of America : American Economic Implosion : Stansberry Research

Originally Posted by المفكّر

Yes, it is muscle flexing, because the Chinese can't let go of the U.S dollar en masse without chopping off their own arms. The U.S is counting on the dollar's reserve currency status to keep them afloat, but if the excess money supply continues towards another hyperinflation and $150 oil barrels, everyone is going to realize that the dollar is a troubled child not worth bearing anymore.

their actually predicting oil prices to go up passed $3 a gallon this spring -I think its a good time for Americans to start investing in gold - I have.

Re: The End Of America : American Economic Implosion : Stansberry Research

Originally Posted by MujahidAbdullah

their actually predicting oil prices to go up passed $3 a gallon this spring -I think its a good time for Americans to start investing in gold - I have.

Keep your eye on silver as well. Gold went up 30% last year but silver was up by more than 80%. It is common knowledge now in the world of investment that investors are dumping money in precious metals because of uncertainty about the dollar and that is what is pushing prices up. I want to invest directly in gold bullion, but it isn't possible in my country as far as I know. So right now I am making do with commodities until I find a way to get a hold of my own gold bars.

Re: The End Of America : American Economic Implosion : Stansberry Research

Originally Posted by المفكّر

Keep your eye on silver as well. Gold went up 30% last year but silver was up by more than 80%. It is common knowledge now in the world of investment that investors are dumping money in precious metals because of uncertainty about the dollar and that is what is pushing prices up. I want to invest directly in gold bullion, but it isn't possible in my country as far as I know. So right now I am making do with commodities until I find a way to get a hold of my own gold bars.

Can you invest in gold coins? and is it possible for you to invest in the US, we can invest in gold bullion?

Re: The End Of America : American Economic Implosion : Stansberry Research

Salam

Initially i was expecting the video (I only seen the 5 minute summary) to be something akin to The Arrivals (we all know about that now). However it seems to be more of a salesman talking, and a marketing pitch. I have had a look at there website and they seem like they are working on behalf of somebody. The real creepy question is Who?
Another issue is that while I was doing google research on the company I encountered many fora where there was nothing but negativity about this certain company. Whats more I managed to find a link where is describes how the Stransberry research group was fined for FRAUD by the American security commission.

Re: The End Of America : American Economic Implosion : Stansberry Research

Originally Posted by Kashmir_85

Salam

Initially i was expecting the video (I only seen the 5 minute summary) to be something akin to The Arrivals (we all know about that now). However it seems to be more of a salesman talking, and a marketing pitch. I have had a look at there website and they seem like they are working on behalf of somebody. The real creepy question is Who?
Another issue is that while I was doing google research on the company I encountered many fora where there was nothing but negativity about this certain company. Whats more I managed to find a link where is describes how the Stransberry research group was fined for FRAUD by the American security commission.

I am just now trying to catch up to speed on this thread and have yet to watch the video, your post being the last I've read. It is the RIGHT way of the MUMIN to examine the veracity of such a 'research firm' which makes such claims about itself or any who deal in such endeavors. In fact all sources of the kufar regarding affairs of the world should be examined and analyzed for their veracity.

This is an unpredictable and uncertain topic. One cannot make definitive predictions of the timing of the end of an empire, without the knowledge of the Qadir from Allah. One cannot predict when a village will declare bankruptcy or collapse financially, thereby turning over its political power and finances to s provincial authority. And a village is no more than a few 1000 people.
So how can one predict the collapse of America 310 million people, which has a global empire including the vast majority of the planet, worth 100s of trillions of dollars?

Yes America's debt is now in the 10s of trillions. But America's assets are said to be in the 100s of trillions. America's annual GDP is around 16 trillion.

Yes the American military is strained, but only as it functions in the current organization of America. During WWII, America made a formal declaration of war which granted the federal government the power to ration whichever resources it needed. All industries were subject to federal authority. America rationed all iron and steel throughout the country. It rationed grain and beef. Essentially, America instituted variations of martial law, for the general public in particular. It allowed major companies like Ford and US Steel to function for profit but were closely monitored. America has the capacity to undergo national emergency and martial law and revert to a WWII level of reallocation of resources for military purposes and all the militaries of the world know this despite America's current strain. America has a population of 310 million which can generate 10s of millions more of fighting age. Although the DOD recently reported that only 3 in 10 youth in America even meet the current military recruit requirements.

And yes, not only did Fisk report the 'rumors' of Khaleeji govts contemplating ending dollar based currencies in 09, but foreign ministers of GCC nations had to rush to America to reassure the USA that they were NOT going to do so.

The GCC is in a precarious position as wanting to avoid being forced down with America as it goes down.

According to the UPS president, America has had a transportation infrastructure which has warranted a D rating.
The American Civil Engineers Society gave America's logistics infrastructure a D grade with a call for 2 trillion in investments, while Obama offered only 50 billion.
However the World Bank ranked America's infrastructure 7th, with Japan and Germany exceeding America's infrastructure rating- Germany being a with comparable land mass (both Japanese and German infrastructure happened to be REbuilt in the last 60 years after WWII).

America is going through a systemic transition. It is going through an internal transformation, even a metamorphisis.
It is going through an ideological purification in support of economic liberalist capitalism which favor commerce.

Allah has indicated that within every town there are elites who become powerful who are evil and who plot for themselves against Allah.

6:123 "And thus We have placed within every city the greatest of its criminals to conspire therein. But they conspire not except against themselves, and they perceive [it] not."

Re: The End Of America : American Economic Implosion : Stansberry Research

Originally Posted by Kashmir_85

Salam

Initially i was expecting the video (I only seen the 5 minute summary) to be something akin to The Arrivals (we all know about that now). However it seems to be more of a salesman talking, and a marketing pitch. I have had a look at there website and they seem like they are working on behalf of somebody. The real creepy question is Who?
Another issue is that while I was doing google research on the company I encountered many fora where there was nothing but negativity about this certain company. Whats more I managed to find a link where is describes how the Stransberry research group was fined for FRAUD by the American security commission.

I would advise you and brother marco to not dismiss the reality of the U.S's economic conditions just because the first link posted in the thread is a scam. There are many more credible and well-known economic and financial analysts who have said similar things. That is why in the past year there has been such a huge rally towards gold and silver, because investors are seeking stability as the dollar gets more and more weak.

Re: The End Of America : American Economic Implosion : Stansberry Research

Originally Posted by المفكّر

I would advise you and brother marco to not dismiss the reality of the U.S's economic conditions just because the first link posted in the thread is a scam. There are many more credible and well-known economic and financial analysts who have said similar things. That is why in the past year there has been such a huge rally towards gold and silver, because investors are seeking stability as the dollar gets more and more weak.

Investment selling is always a cycle. When fuel prices were this high in 2008, investors did the same thing again, but back then people were trading ON THE fuel prices being high, almost like placing a bet.

Regarding the weakness of America, every nation has a weakness, but lets not forget America is a superpower. Beware the media representation of there weaknesses, because it may be just that they are working behind the scenes on something else, and decided this was a good news story to pursue.

In America, you can only report what they want you to see. Look at Wikileaks and what is happening to the founder where he is wanted in US?